Joe Stocks Trader Talk Message Board

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : Joe Stocks Trader Talk

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: Joe Stocks who started this subject	3/15/2002 8:28:39 AM
From: Joe Stocks	Read Replies (1) of 787

Sounds like accounting issues are getting hot again. Looks like some want to look into FNM and FRE. I think the problem here is that these two are well hedged during normal times but if things get a little abnormal we could see some big problems ahead. In my opinion that is what hit ENE the hardest. During ordinary times - as defined by the preceding 4 years- they would have been okay. Once they hit some extraordinary set-backs their hedges did not go far enough. Unfortunately those "setback" were just a return to normal market conditions and growth scenarios and what they thought was now ordinary was really the extraordinary times of the late 90's. Does that make sense. I don't know if it does or not. LOL! Here's the clip from MarketWatch: Fannie and Freddie may get hearings (FNM, FRE) By Steve Gelsi Republican Senator Chuck Hagel has asked for a hearing on the accounting practices of Fannie Mae (FNM) and Freddie Mac (FRE) , according to published reports citing a government aide. Hagel asked the chair of the Senate banking committee's panel on housing to look into the two mortgage finance companies, the aide said. While chartered by Congress, the two companies are owned by shareholders. The mortgage finance firms' debt was cited as a potential cause for difficulty in the Bush administration's budget proposal for the coming year. The companies have come under scrutiny by critics who have quesitoned whether their use of derivatives is risky and should be more carefully examined. Fannie Mae and Freddie Mac have said they're carefully regulated by the government and are subject to greater scrutiny than most financial services specialists. They have said they use derivatives wisely to hedge against interest rate risk. Shares of Fannie Mae fell 11 cents to $79.89 on Thursday. Freddie Mac fell 10 cents to $64.55.

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next